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FDTown!Brewing!Company’s!Strategic!

Marketing!Plan!
Jack!Hultstrand,!Kaylen!Guzzi,!Mikenna!Keller,!Megan!Skelly,!
and!Daniel!Parmenter

Strategic!Marketing!Plan!
Marketing!250!!
Professor!Sian!Muir!!
St.!Olaf!College!!
!

0!

Table&of&Contents&&

!

Executive&Summary&!
1. Current&Marketing&Strategy!
1.1. Strategic+Marketing+Plan+Goals++
1.2. F7Town’s+Goals+and+Objectives+for+Expansion+
1.3. F7Town+Brewing+Company’s+Founders+
1.4. F7Town’s+Mission+
1.5. Strategy+for+Differentiation+
1.6. Marketing+Mix+
1.7. Current+Target+Market+
2. Industry&Overview&
3. Projection&of&the&Client’s&Competitive&Environment&
3.1. Surly+Brewery+
3.2. Indeed+Brewery+
3.3. Fulton+Beer++
3.4. Badger+Hill+Brewery++
4. External&Analysis&
4.1. Cultural+and+Social+Trends+
4.2. Demographics+Specific+to+Minnesota+
4.3. Demographics+Specific+to+Faribault+
4.4. Technological+Trends++
4.5. Economic+Trends+
4.6. Political/Regulatory+Environment+
5. SWOT&Analysis&
5.1. Strengths+
5.2. Weaknesses+
5.3. Opportunities+
5.4. Opportunities+
6. F8Town’s&Sustainable&Competitive&Advantage&!
7. Segmentation&!
7.1. Urban+Minnesotan+males,+ages+24732!
7.2. Suburban+Minnesotan+males,+ages+30742!
7.3. Urban+Minnesotan+females,+ages+24742!
8. Targeting&&
8.1. Representative+Agent+from+the+Target+Market+
8.2. Secondary+Representative+Agent++
9. Positioning&&
9.1. Price+
9.2. Product+
9.3. Promotion+
9.4. Place+
10.&Marketing&Plan&Implementation&and&Expected&Return+
+++++++10.1710.3+Implementation++
+++++++10.4+Timeline+for+the+campaign+
+++++++10.5+Budget+
+++++++10.6+Contingency+Plan+
+++++++10.7+ROI+

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Executive)Summary)
))
Marketing)Plan)Summary)

)

FDTown!is!a!fairly!new!company!in!the!craft!beer!industry,!hoping!to!promote!brand!
awareness!amongst!its!competitors,!build!a!loyal!customer!base,!and!expand!distribution!of!
its!products!throughout!the!state!of!Minnesota.!This!marketing!plan!is!designed!to!help!FD
Town!achieve!these!goals!through!identifying!the!current!craft!beer!industry!and!its!
characteristics,!picking!a!reachable!target!market,!and!creating!a!way!to!bring!brand!
awareness!to!this!market.!The!plan!will!include!an!implementation!strategy!for!the!next!6!
months!in!order!to!help!FDTown!build!its!brand!and!stand!out!among!the!craft!beer!
industry.!

)
)
Company)Overview)

)
FDTown!Brewing!Company!was!founded!in!2015!and!is!an!emerging!craft!brewery!hoping!
to!establish!a!brand!identity!throughout!the!Midwest!in!the!coming!years.!The!brewery!and!
taproom!is!located!in!Faribault,!Minnesota.!
!
!
!

The)Business)and)Their)Product)

!
FDTown!Brewing!Company!produces!and!distributes!craft!beer!throughout!Minnesota.!The!
brewery!has!four!different!types!of!craft!beer,!Ipalicious,!Nutso,!#1!American,!and!Flex!
Less.!Presently,!FDTown’s!craft!beer!is!in!the!introductory!stage.!Coming!into!the!already!
developed!market!of!craft!beer,!they!compete!primarily!based!on!the!fact!that!they!are!a!
new!and!interesting!brand!coming!into!the!industry.!They!use!quality!ingredients!and!have!
recipes!that!have!been!perfected!over!the!time!span!of!many!years.!FDTown’s!future!plans!
include!expanding!into!new!markets,!distributing!to!more!restaurants,!bars,!and!liquor!
stores,!and!developing!new!brews!based!on!customer!demand.!!
!
!

The)Market)

!
The!overarching!industry!is!alcoholic!drinks,!however,!on!a!more!specific!level,!FDTown!
Brewing!Company!is!within!the!craft!beer!industry.!The!total!craft!beer!sales!were!
approximately!19.6!billion!dollars!in!2014,!and!continue!to!grow!year!to!year.!As!of!now,!FD
Town!Brewing!Company!has!limited!brand!awareness!and!does!not!hold!a!significant!
presence!in!the!craft!beer!market.!With!the!industry!continually!growing,!there!is!a!great!
opportunity!for!FDTown!Brewing!Company!to!break!into!the!market.!The!main!consumers!
of!the!craft!beer!market!are!males!between!the!ages!of!27D42.!
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1!

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Competition)

!
FDTown!Brewing!Company!competes!directly!with!about!75!other!Minnesota!craft!
breweries,!most!of!which!are!located!in!the!Twin!Cities.!FDTown!has!a!competitive!
advantage!because!of!their!relatively!new!entrance!to!the!world!of!Minnesota!craft!
brewing.!Many!restaurants,!bars,!liquor!stores,!and!consumers!in!general!would!be!
interested!in!FDTown!because!they!are!always!into!finding!new!and!flavorful!brews.!
Although!there!are!many!breweries!in!the!market,!it!is!expected!that!more!will!enter!the!
industry!in!months!and!years!to!come.!
!
!

Risk/Opportunity)

!
The!greatest!risks!associated!with!FDTown!Brewing!Company’s!business!today!are!their!
lack!of!awareness!across!the!state!of!Minnesota!and!lack!of!an!established!brand!identity.!FD
Town!can!overcome!these!risks!by!signing!with!new!distributers!and!reaching!the!most!
profitable!segment!of!consumers.!!Their!biggest!recognized!opportunities!include!
expansion!to!restaurants,!bars,!and!liquor!stores!across!the!state!that!do!not!yet!have!FD
Town!beer!as!well!as!to!new!distributors!with!a!larger!reach!than!College!Town.!
!
!

Management)Team)

!
Three!local!Minnesotans,!Travis!Temke,!Chris!Voegele,!and!Noah!Strouth!own!FDTown!
Brewing!Company.!Travis!Temke!works!on!the!business!side.!His!experience!owning!small!
businesses!helps!FDTown!stay!running!with!solid!logistics!and!planning.!Chris!Voegele,!with!
a!degree!in!chemistry,!and!Noah!Strouth,!with!a!degree!in!engineering,!are!the!brains!
behind!the!recipes!and!brewing!operations.!
!

)
)

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2!

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1. Current)Marketing)Strategy)

!
According!to!owner!Travis!Temke,!FDTown!Brewing!Company!does!not!have!any!
formal!marketing!plan!outside!of!monthly!objective!lists!revolving!around!their!
current!social!media!accounts!and!other!various!events.!The!company!is!in!the!
process!of!establishing!a!brand!identity!as!they!are!new!to!the!brewing!industry.!)

!
Strategic+Marketing+Plan+Goals++

1.1.
+


1.2.




+
1.3.

To!promote!and!build!FDTown’s!brand!awareness!within!the!competitive!
industry!of!craft!beer!
To!build!a!loyal!customer!base!that!will!continue!to!stay!up!to!date!with!the!
company!
To!expand!distribution,!which!will!grow!based!off!consumer!demand,!for!FD
Town!products!throughout!the!state!of!Minnesota!
+

F6Town’s+Goals+and+Objectives+for+Expansion+

!
Have!FDTown!beer!distributed!throughout!the!state!of!Minnesota!in!two)years!
Have!FDTown!beer!distributed!throughout!the!Midwest!in!five)years)!
The!company!is!focused!on!establishing!a!company!image!and!a!brand!identity!in!
order!to!get!consumers!excited!about!their!product!
Continue!taproom!service,!brewery!tours,!and!events!to!engage!local!customers!
The!main!focus!is!expanding!distribution!to!the!point!where!FDTown!beer!is!in!
every!bar,!restaurant,!and!liquor!store!in!the!Midwest!

F6Town+Brewing+Company’s+Founders+

!
• Noah,!an!engineer,!and!Chris,!a!chemist,!have!been!formulating!beer!recipes!for!
the!last!8!years!
• With!the!help!of!Travis,!an!entrepreneur,!they!turned!their!craft!beers!into!a!
business!and!opened!up!FDTown!Brewing!Company!and!taproom!in!Faribault,!
MN!(a!small!town!south!of!Minneapolis)!in!October!of!2015!
!

1.4.

!

F6Town’s+Mission+
“Located!just!across!the!Straight!River!from!one!of!the!area’s!original!breweries!
in!downtown!Faribault,!FDTown!will!reignite,!pursue!to!perfect,!and!blaze!a!new!
trail!of!brewing!high!quality!beer!that!began!in!this!town!in!1856.”1!
!
!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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http://www.ftownbeer.com/ftown/about-f-town/

3!

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1.5.

Strategy+for+Differentiation+

1.6.

Marketing+Mix+

!
• FDTown!Brewing!Company!is!differentiated!with!the!focus!on!product!excellence!
paired!with!a!unique!variety!of!craft!beer!that!was!developed!over!an!eightDyear!
time!period!
• FDTown!also!provides!consumers!with!the!option!to!consume!their!beer!in!a!
historyDrich!and!enjoyable!atmosphere!
!

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!

!
• Product:!craft!beer!!
o Although!the!business!only!recently!opened,!the!recipes!of!FDTown!Brewing!
Company!have!been!in!the!making!for!the!past!8!years!
o They!now!make!and!sell!4!different!kinds!of!craft!beer2!
! Ipalicious:!An!India!pale!ale!with!a!piney!citrus!punch!and!a!malty!flavor!
! Nutso:!A!nut!brown!ale!with!a!creamy!oatmeal!finish!due!to!the!flavoring!
of!roasted!nuts!and!toffee!
! #1!American:!A!pale!ale!with!a!caramel!flavor!and!hints!of!orange!and!
grapefruit!
! Flex!Less:!a!very!hoppy!and!flavorful!beer!
!
• Place:!The!Taproom!and!Brewery!
o FDTown!Brewing!Company!will!mainly!be!servicing!the!City!of!Faribault!and!
surrounding!towns!with!their!taproom!service.!The!City!of!Faribault!has!a!
total!population!of!23,4143,!of!which!about!5,000!are!eligible!beer!
consumers,!based!off!age!and!income!
o FDTown’s!taproom!is!open!Wednesdays!–!Sundays,!where!you!can!taste!and!
purchase!their!four!types!of!beer!(Ipalicous,!Nutso,!#1!American,!and!Flex!
Less)!
o FDTown!offers!tours!of!their!brewery!on!Thursdays!and!Saturdays!
o They!bring!in!customers!and!their!families!through!numerous!events,!which!
include!food!truck!services!on!the!weekends,!live!music,!and!pubDcrawls!
o To!spread!FDTown’s!name!outside!of!Faribault,!they!have!participated!in!pubD
crawls!that!travel!to!the!nearby!town!of!Northfield,!MN!
o Key!benefits!to!their!location!are!affordable!leasing,!room!for!expansion!
within!the!existing!warehouse,!and!possibilty!for!customers!to!tour!the!
taproom!and!brewery!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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http://www.ftownbeer.com/ftown/our-beer/!
http://www.ci.faribault.mn.us/

4!

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Place:!Local!Distribution!
o FDTown!Brewing!Company!is!a!threeDtier!microbrewery!that!currently!has!
one!distributor,!College!Town!Beverage,!which!include!Rice,!Steele,!Dakota,!
and!parts!of!Scott!and!Waseca!County!
! Distribution!is!FDTown’s!biggest!source!of!revenue4!
o FDTown!is!in!the!process!of!expanding!distribution!to!restaurants!and!liquor!
stores!in!other!parts!of!MN,!including!the!Rochester!and!Mankato!area!as!
well!as!the!twin!cities!
! Currently!they!are!partnered!with!College!Town!Beverage!and!various!
restaurants!in!the!South!Suburban!loop!!
o Proximity!to!Interstate!35!makes!distribution!from!the!FDTown!warehouse!
feasible!5!!
!
Price:!!
o Higher!due!to!quality!of!craft!beer,!but!still!in!the!same!range!as!their!
competitors!
o Craft!beer!has!a!price!range!of!$10D15,!averaging!at!$2/12!oz.!bottle6!
o A!6!pack!of!FDTown’s!beer!is!suggested!for!retail!at!$9.997!!
!
Promotion:!!
o Social!media:!Facebook,!Twitter,!and!personal!website!!
o Promotional!videos!posted!to!social!media!sites!
o Daily!tours!of!brewery!along!with!taste!testing!
o Events:!Pub!Crawls,!Grand!Opening!with!concert,!and!weekly!events!with!
food!trucks!and!live!music!(all!activities!are!family!focused!and!friendly)!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
4

Travis Temke – Owner of F-Town
Travis Temke – Owner of F-Town
6
http://www.huffingtonpost.com/2014/09/12/craft-beer-expensive-cost_n_5670015.html
7
Firehouse Liquor, Travis Temke – Owner of F-Town!
5

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5!

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1.7.

!

Current+Target+Market+

!
o Primary:!males!ages!27D42!are!the!main!consumer!of!craft!beer!and!the!main!
segment!of!consumers!drinking!craft!beer!at!FDTown!Brewing!Company!8!
o Secondary:!males!ages!21D26!are!the!second!largest!consumer!of!craft!beer!
and!are!the!second!largest!segment!drinking!craft!beer!at!FDTown!Brewing!
Company!9!!!
!

2. Industry)Overview)
)

!

The!craft!beer!industry!has!experienced!rapid!expansion!over!the!last!decade.!In!
2014,!craft!beer!sales!accounted!for!17.6!percent!of!all!beer!sales,!totaling!19.6!
billion!dollars.10!Craft!microbreweries!produce!unique,!high!quality,!specialty!beers!
that!are!generally!consumed!by!geographically!local!customers.!With!hard!to!obtain!
liquor!sales!licenses,!taprooms!are!a!popular!way!for!brewers!to!exhibit!their!beer!
and!attract!customers!with!food!trucks,!live!music,!and!other!events.11!
With!the!expanding!demographics!and!continued!growth!of!craft!brewing!
awareness,!expansion!is!inevitable.!Craft!brewing!by!microbreweries!is!at!its!peak.!
As!of!2015,!Minnesota!has!73!microbreweries.12!With!73%!of!craft!beer!drinkers!
saying!that!they!usually!know!what!brand!of!beer!they!are!going!to!buy!before!they!
go!to!the!store,!brand!awareness!is!key.13!
!
14!
!!!!!!!!!!!!!!!!!!

)
)

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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Travis – Owner of F-Town Brewing Company
Travis – Owner of F-Town Brewing Company
10
https://www.brewersassociation.org/statistics
11
Events Pages (Surly, Fulton, F-Town, Sociable Cider Werks0
12
https://www.brewersassociation.org/statistics/by-state/?state=MN
13
http://www.craftbrewingbusiness.com/business-marketing/craft-beer-consumer-stats-how-will-affect-yourbusiness-plan/
14
https://www.brewersassociation.org/statistics/by-state/?state=MN
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6!

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3. Projection)of)the)Client’s)Competitive)Environment)
)
FDTown’s!competitors!consist!of!other!craft!beers!that!are!distributed!or!produced!in!
the!state!of!Minnesota.!Surly,!Indeed,!Fulton,!and!Badger!Hill!are!Minnesotan!
microbreweries!that!have!experienced!rapid!growth!over!the!past!couple!of!years.!
Though!FDTown’s!recipes!differ!from!these!microbreweries,!they!offer!the!same!
product,!craft!beer.!Brand!awareness!is!key!in!differentiating!products.!!

)
3.1.
!

Surly+Brewery+
Overview!!

!

o In!!2011,!Surly!founder!Omar!Ansari!opened!a!restaurant!and!beerDgarden!in!
Brooklyn!Center!Minneapolis!with!a!100,000!barrel!capacity.!!In!2014,!Surly!
moved!its!brewery!to!an!8Dacre!plot!off!University!Avenue!that!features!a!
modernized!industrial!grain!storage!plant!to!increase!production!and!
capacity!of!beer!hall!space.!!The!restaurant!features!a!second!story!balcony!
and!a!1.5Dacre!lot!for!food!service,!games,!and!occasional!music!

!


!

Brewery!!
o Surly!features!a!beer!hall!with!high!quality!food!that!aims!to!be!a!step!up!
from!other!breweries!that!rely!on!food!trucks.!Surly!hired!Soleras!Guzman!as!
their!executive!chef!that!offers!food!built!on!the!flavors!in!the!brews!
o Surly!expanded!production!and!increased!its!workforce!to!154!employees,!
enabling!them!to!offer!their!lineup!in!1,000!bars!and!liquor!stores!across!
Minnesota!and!Chicago!
!
Company!Values!
!
o Surly!positioned!itself!as!the!best!canned!beer!offered!in!Minnesota!with!
accolades!to!back!up!their!statement;!they!are!ranked!the!11th!best!brewery!
on!the!planet!15!!
o Beyond!priding!itself!in!its!numerous!beer!accolades,!Surly!Partners!their!
beer!offerings!with!selections!from!their!executive!chef!through!events!such!
as!pig!roasts!and!Heavy!Metal!concerts16!
!
!
!
!
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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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16

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Ratebeer.com
http://surlybrewing.com/

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3.2.

+

3.3.

Indeed+Brewery+
Overview!
!
o Founded!in!Logan!Park,!Minneapolis!in!2011!by!three!friends!who!were!
former!college!roommates!
o Offers!three!flagship!brands!(Lager,!APA,!IPA)!in!addition!to!five!seasonal!
brands!that!are!offered!in!the!majority!of!Minnesota!liquor!stores!!
o Offers!10!specialty!brews!with!regular!samplings!of!new!brews!in!their!
taproom,!expos,!local!theaters,!and!restaurants!
o Indeed!sponsors!fundraising!events!for!their!local!community!such!as!beerD
pong!tournaments!and!music!festivities!(Hullabaloo).!Proceeds!from!these!
events!go!to!neighborhood!associations,!the!American!Cancer!Association,!
and!outdoor!camps.!!
o Indeed!also!regularly!has!beerDtasting!expos!with!local!restaurants!
!
Brewery!
!
o After!four!years!of!serving!Minneapolis!and!expanding!into!the!suburbs!in!
the!Twin!Cities,!the!Northern!Minneapolis!Chamber!of!Commerce!recognized!
Indeed!as!the!MidDSize!Business!of!the!Year!for!2015!
o The!company!is!in!the!process!of!expanding!distribution!after!receiving!Silver!
Medal!in!Great!American!Beer!Festival!in!Denver!Colorado!!
o They!are!also!working!on!bringing!Indeed’s!full!lineup!of!quality!craft!beer!to!
North!Dakota!
o Features!spacious!woodDandDbrick!space!with!shuffleboard!and!a!patio!that!
seats!120!customers!with!a!rotation!of!food!trucks!
!
Company!Values!
o Indeed!targets!their!brewery!lineup!with!outdoor!enthusiasts!
o Beers!are!meant!to!be!“shared!around!a!campfire!with!a!friend”!and!the!
“lively!tap!room”!is!built!to!make!this!a!realistic!vision!!
o “Minnesotans!embody!an!adventurous!spirit!as!they!dig!out!after!a!big!storm!
or!dip!their!paddle!in!a!northern!lake”!!
o To!market!these!values!Indeed!will!regularly!partner!with!local!outdoor!
supply!companies!and!sponsor!triathlons!17!
!

Fulton+Beer++

!
• Overview!
!
o Fulton!Beer!was!founded!in!a!Southwest!Minneapolis!garage!in!2009!by!
homebrewers!Peter!Grande,!Brian!Hoffman,!Jim!Diley,!and!Ryan!Petz!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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http://www.indeedbrewing.com/

8!

!
The!four!developed!recipes!in!Peter's!garage!and!began!commercial!
brewing!by!contracting!at!Sand!Creek!Brewing!Company!in!Wisconsin!
o Their!aspirations!for!expansion!came!together!faster!than!the!owners!would!
have!ever!imagined,!and!by!fall!2011,!they!had!opened!a!new!brewery!in!the!
North!Loop!neighborhood!of!downtown!Minneapolis,!near!Target!Field!!
o The!Downtown!Minneapolis!brewery!features!growler!sales!and!has!a!
taproom!open!Wednesday!through!Sunday,!as!well!as!during!every!home!
Twins!game!
o In!2014,!Fulton!began!brewing!and!bottling!in!their!new!51,000!sq.!ft.!
production!facility!in!N.E.!Minneapolis.!Fulton’s!brewing!philosophy!
"Ordinary!Guys!Brewing!Extraordinary!Beer"!reflects!the!founders'!desire!to!
make!extraordinary!craft!beer!accessible!to!and!enjoyable!by!all!
!
Brewery!
!
o When!they!started!Fulton!in!2009,!their!vision!was!to!build!a!brewery!in!
Minneapolis!sometime!in!the!next!5D10!years!
o Through!uncharted!rapid!growth,!in!2013!they!built!their!second!brewery.!
The!new!brewery!is!located!in!Northeast!Minneapolis!off!Lowry!&!2nd!St!NE.!
They!are!currently!remodeling!a!51,000!square!foot!warehouse!into!a!
production!brewery!with!an!80!barrel!brewhouse,!160!barrel!fermentation!
tanks,!bottling!and!kegging!lines,!and!even!more!room!for!growth!
o Production!at!the!Northeast!brewery!began!in!the!spring!of!2014.!The!new!
location!won't!have!a!taproom,!but!their!existing!location!near!Target!Field!in!
the!North!Loop!neighborhood!will!continue!to!operate!as!a!smallDbatch!
brewery!and!taproom!
o Fulton!is!all!about!beer,!and!admittedly!they!know!very!little!about!anything!
else.!The!only!alcoholic!beverage!they!serve!is!the!beer!they!brew!on!
premises.!If!you!want!a!bite!while!on!location,!offerings!from!a!rotation!of!
food!trucks!or!ordering!in!from!North!Loop!neighborhood!restaurants!are!
options!
!
Company!Values!
!
o Fulton’s!founders!believe!that!beer!brings!people!together!and!strive!to!do!
their!part!to!give!back!to!the!craft!brewing!community.!With!these!basic!
principles!in!mind,!Fulton’s!mantra!includes!these!six!concepts:!Complexity!
and!approachability!can!and!should!coexist!in!beer,!Excellence!is!not!cause!
for!pretense,!Everything!worth!doing!is!worth!doing!with!soul,!In!business,!
doing!good!and!doing!well!should!be!one!and!the!same,!Passion!is!the!
ultimate!differentiator,!Extraordinary!lives!deserve!extraordinary!beer18)!
!
!
!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
18

!

http://fultonbeer.com/

9!

!

3.4.

Badger+Hill+Brewery++

!
• Overview!
!
o Badger!Hill)was!founded!by!two!brothers!in!2011,!united!by!a!hankering!for!
travel!and!craft!beer!!
! The!name!of!the!company!stems!from!their!European!heritage,!despite!
being!Minnesotans!through!and!through,!the!Badger!Hill!Brewing!
Company!was!founded.!It!stands!by!its!promise!to!“keep!coming!up!with!
new!recipes!while!staying!true!to!the!brew.”!19!
o They!strive!to!stay!true!to!the!brew!by!pushing!their!beer!standards!to!taste!
better!and!keep!longer!because!of!their!complete!control!over!each!batch!
! Unlike!a!winery!that!might!have!good!years!and!bad!years,!they!demand!
that!their!barley,!hops,!yeast!and!their!fermentation!practices!fall!within!
specific!guidelines.!This!means!that!they!“obsess!over!the!hop!bitterness,!
hop!essential!oils,!percentages!of!specialty!malt,!types!of!yeast,!
fermentation!temperatures”!20!and!that!they!have!the!ability!to!“dissect!
every!flavor!and!every!aftertaste.”!!
o Badger!Hill!urges!craft!beer!drinkers!to!“enjoy!getting!to!know!your!local!
craft!breweries!and!follow!them!as!they!mature,!experiment!and!create!new!
flavors!for!you!to!enjoy.”!21!

!

Brewery!
!
o As!the!company!has!grown,!demand!has!risen,!and!the!environment!has!
changed,!Badger!Hill!Brewing!Company!opened!a!brewery!in!Shakopee,!MN!
in!the!Spring!of!2014!
o Badger!Hill!Brewing!shared!a!Minnetonka!brewery!with!Lucid!Brewing!and!
Bad!Weather!Brewing,!two!Minnesota!microbreweries,!through!an!
alternating!proprietorship!
o Badger!Hill’s!partnership!with!Lucid!and!Bad!Weather!continued!at!Badger!
Hill’s!new!13,000!square!foot!brewery!in!Shakopee,!nestled!between!
Valleyfair!and!Canterbury!Park,!a!high!traffic!area,!where!both!Lucid!and!Bad!
Weather!will!have!an!opportunity!to!can!their!beers!on!Badger!Hill’s!new!
canning!line!
! What’s!more,!the!spirit!of!the!original!partnership!will!live!on!as!Badger!
Hill!looks!to!“pay!it!forward”!by!offering!other!startDup!breweries!the!
same!kind!of!alternating!proprietorship!they!had!with!Lucid!22!!
! The!new!brewery!features!8!tap!beers,!2!nitro!lines,!handcrafted!sodas,!
growlers!to!go!and!a!large!glass!wall!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
19
Badgerhillbrweing.com!
20
Badgerhillbrweing.com!
21
Badgerhillbrweing.com!
22

!

http://growlermag.com/badger-hills-new-brewery-in-shakopee/

10!

!

o Official!Badger!Hill!growlers!are!available!to!purchase!to!go!Tuesday!through!
Sunday!for!$5!
o Badger!Hill!does!not!prepare!any!food!and!encourages!customers!to!order!in!
from!numerous!local!options)or!participate!in!#FoodTruckFriday,!which!
consists!of!various!food!trucks!coming!to!the!brewery’s!kidDfriendly!patio23!
!
Company!Values!
!
o Badger!hill!highly!values!the!relationships!established!and!shared!through!
and!over!beer.!They!find!pride!in!their!extended!family!of!customers,!
distributors,!vendors!and!fellow!brewers!and!are!following!in!the!footsteps!of!
a!deep!brewery!culture!in!Minnesota,!from!The!Land!of!Sky!Blue!Waters!to!
Grain!Belt,!Summit!EPA!to!Surly!Furious,!and!a!new!and!everDchanging!
generation!of!fresh!local!beers.!This!emphasis!on!relationships!led!Badger!hill!
to!BSG!CraftBrewing!(Brewers!Supply!Group),!which!is!located!in!Badger!Hill!
Brewing’s!backyard!in!Shakopee,!Minnesota,!who!supplies!their!malt!and!
hops,!two!extremely!important!ingredients!in!beer.!Through!the!help!of!these!
relationships!in!Craft!Brewing,!Badger!Hill!has!established!and!identified!
their!five!core!values;!Fun,!Smart,!HardDworking,!Honest,!and!Nice!
!
!

4. External)Analysis)
!

4.1.

Cultural+and+Social+Trends+

+
Supporting)Local)Businesses))
o There!are!1,046!nonDchain!dinner!and!lunch!restaurants!in!the!Twin!Cities!
and!the!surrounding!suburbs)
! These!nonDchain!restaurants!are!where!craft!beers!are!on!tap!or!
distributed!24)
o YoungDprofessionals!and!families!frequent!restaurants!as!an!easy!substitute!
for!cooking!or!to!relax!after!work.!Those!who!dine!out!frequently!are!more!
likely!to!have!higher!income!25)
)
Drinking)While)Socializing))
o FiftyDthree!percent!of!craft!beer!drinkers!ages!22D44!say!that!they!grab!a!
drink!to!relax!
! Half!of!these!consumers!are!two!times!as!likely!to!associate!craft!beer!
consumption!with!casual!gatherings!26!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
23

http://www.badgerhillbrewing.com/
http://mspmag.com/restaurantguide/?q=&rm=7,6&view=list&vc=100&sort=n&sp=564
25
http://www.cbsnews.com/news/how-and-where-america-eats/
26
http://www.csnews.com/product-categories/beverages/survey-craft-beer-consumers-casual-dual-drinkers!
24

!

11!

!
Craft)Beer)is)a)Growing)Trend))
o “The!majority!of!beer!drinkers!aged!22D34!believe!that!brand!and!style!of!
beer!says!a!lot!about!a!person,!which!highlights!the!value!the!age!group!
places!on!image.”!
! These!consumers!value!the!uniqueness,!quality,!and!image!that!is!
associated!with!craft!beer!27!
o EightyDfour!percent!of!craft!beer!drinkers!choose!their!beer!depending!on!the!
season!and!flavors!!
o FortyDfive!percent!of!craft!drinkers!say!they!would!try!more!types!of!craft!
beer!if!they!knew!more!about!the!product!ingredients!and!the!company!
itself28!
o Craft!beer!is!becoming!just!as!acceptable!as!wine!to!bring!as!a!host!or!
housewarming!gift.!It!is!also!as!acceptable!as!wine!to!pair!with!meals!29!
o Variety!packs!are!gaining!popularity!among!consumers.!In!2014,!variety!
packs!went!up!by!24!percent!by!dollar!sales!30!
!
Brand)Loyalty)and)Craft)Consumers))
o “Brand!loyalty!continues!to!be!a!nonDfactor,!especially!among!millennial!
drinkers,!as!they!are!most!interested!in!trying!as!many!styles!of!beers!from!
as!many!breweries!as!possible!and!see!that!as!a!badge!of!honor.”31!
! Millennials!are!not!dedicated!to!one!brand!or!type!of!craft!beer;!instead,!
they!enjoy!trying!many!different!varieties.!Flights!of!beer!are!a!popular!
way!for!distributors!to!cater!to!Millennial’s!desire!for!variety!
!
4.2.
Demographics+Specific+to+Minnesota+
!
• Primary:!males!ages!27D42!are!the!main!consumer!of!craft!beer!and!the!main!
segment!drinking!craft!beer!across!the!state!of!Minnesota!
• Secondary:!males!ages!21D26!are!the!second!largest!consumer!of!craft!beer!and!
are!the!second!largest!segment!drinking!craft!beer!in!Minnesota!!
• Tertiary:!females!21D34!account!for!fifteen!percent!of!total!craft!beer!volume!
consumption!at!Microbreweries!in!Minnesota32!!
• Traditionally,!women!have!not!been!beer!drinkers.!It!has!generally!been!seen!as!
a!masculine!product!and!women!have!traditionally!drunk!wine.!Women!are!now!
starting!to!switch!to!craft!beer,!because!of!the!difference!in!flavors!that!most!
crafts!provide!33!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
27

http://www.csnews.com/product-categories/beverages/survey-craft-beer-consumers-casual-dual-drinkers
http://www.craftbrewingbusiness.com/business-marketing/craft-beer-consumer-stats-how-will-affect-yourbusiness-plan/
29
https://www.brewersassociation.org
30
https://www.brewersassociation.org
31
https://www.beermenus.com/blog/92-2014-craft-beer-wrap-up
32
https://www.brewersassociation.org
33
http://www.craftbeer.com/craft-beer-muses/why-women-are-a-critical-part-of-the-future-of-u-s-craft-beer
28

!

12!

!






!

SeventyDfive!percent!of!all!craft!beer!drinkers!live!within!10!miles!of!a!
Microbrewery.!In!Minnesota,!the!largest!concentration!of!Microbreweries!is!in!
the!Twin!Cities!34!
“Craft!beers!have!found!a!way!to!appeal!to!fortyDnine!percent!of!Millennials!and!
forty!percent!of!Gen!Xers,!but!just!twentyDnine!percent!of!Baby!Boomers!and!
twentyDtwo!percent!of!Swing!Generation/World!War!II.”!35!
o Craft!beer!has!penetrated!a!segment!of!the!population!that!are!particularly!
hard!to!capture!as!an!overall!segment!because!of!their!fixed!purchasing!
habits!late!in!life!
The!bottom!sixty!percent!of!households,!measured!by!per!capita!income,!now!
consume!forty!percent!of!craft!volume!36!
Beer!leads!wine!as!the!preferred!drink!in!the!United!States!37!
8!in!10!upperDincome!Americans!who!are!also!college!grads!drink!alcohol!
About!half!of!lowerDincome!Americans!drink!alcohol!38!
!
!
!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
34

http://growlermag.com/minnesota-brewery-map/
http://www.craftbrewingbusiness.com/business-marketing/craft-beer-consumer-stats-how-will-affect-yourbusiness-plan/
36
https://www.brewersassociation.org
37
http://www.gallup.com/poll/184358/drinking-highest-among-educated-upper-incomeamericans.aspx?g_source=beer%20consumption&g_medium=search&g_campaign=tiles!
38
http://www.gallup.com/poll/184358/drinking-highest-among-educated-upper-incomeamericans.aspx?g_source=beer%20consumption&g_medium=search&g_campaign=tiles!
35

!

13!

!

4.3.


Demographics+Specific+to+Faribault:)

!
1!in!5!families!in!Faribault!speak!another!language!other!than!English!at!home,!
showing!the!diverse!cultural!demographics!that!Faribault!has!39!
Faribault’s!median!household!income!in!2012!was!$51,376,!almost!$8,000!less!
than!the!national!average!40!
Faribault’s!largest!age!demographic!group!in!2005,!2015,!and!projected!for!the!
future!is!ages!25D44!41!
!
!

!

!
!
!
!
!
!
!
!
!
!
!
!
!
!
)

4.4.

Technological+Trends++

!
Craft)Breweries))
)
o Recipes!differentiate!craft!from!standard!beer.!Brewmasters!take!pride!in!the!
ingredients!they!use,!always!finding!what!they!deem!as!the!highest!quality!
o The!small!size!of!Microbreweries!makes!it!easier!for!them!to!innovate!quickly!
because!they!are!able!to!change!production!of!beer!to!meet!current!market!
demand!42!
!
Social)Media))
)
o SocialDmedia!hashtags!make!promotional!message!more!portable!and!viral.!
Hashtags!are!today’s!new!language!and!allow!brands!to!gain!the!social!reach!
they!strive!for!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
39

http://www.culturecareconnection.org/documents/Faribault_Report.pdf
http://www.visitfaribault.com/faribault-facts/
41
http://www.visitfaribault.com/faribault-facts/
42
https://www.brewersassociation.org
40

!

14!

!
o Pictures!posted!on!Facebook,!Instagram,!and!Twitter!are!important!
promotional!components.!Encouraging!customers!to!post!and!tag!your!firm!
is!beneficial!as!well.!Contests!such!as!best!picture!of!the!month!that!reward!
winners!with!free!drinks!capture!attention!43!
o Brands!that!post!on!socialDmedia!less!often,!perhaps!just!once!or!twice!a!day,!
get!seventyDthree!percent!more!comments!and!thirtyDtwo!percent!more!
“likes”!than!those!who!post!three!or!more!times!44!

!

4.5.


Facebook+
! The!most!common!age!demographic!of!Facebook!users!is!25!to!34,!
accounting!for!twentyDnine!percent!of!users!45!
! EightyDseven!percent!of!18D29!year!olds!use!Facebook)
! SixtyDsix!percent!of!males!use!Facebook)
! SeventyDone!percent!of!Facebook!users!live!in!urban!areas)
! SeventyDfour!percent!of!Facebook!users!are!college!graduates)
! SeventyDfour!percent!of!adults!making!$50,000–$74,999!use!Facebook)
)
Twitter+
! ThirtyDseven!percent!of!18D29!year!olds!use!Twitter)
! TwentyDfour!percent!of!males!use!Twitter)
! TwentyDfive!percent!of!Twitter!users!live!in!urban!areas)
! Thirty!percent!of!Twitter!users!are!college!graduates)
! TwentyDseven!percent!of!adults!making!$50,000–$74,999!use!Twitter)
)
Instagram+
! FiftyDthree!percent!of!18–29!year!olds!use!Instagram)
! TwentyDtwo!percent!of!males!use!Instagram)
! TwentyDeight!percent!of!Instagram!users!live!in!urban!areas)
! TwentyDfour!percent!of!Instagram!users!are!college!graduates)
! TwentyDsix!percent!of!adults!making!$50,000–$74,999!use!Instagram!46)
!

Economic+Trends+

!
The!craft!beer!industry!grew!17.6%!nationwide!in!2014,!making!a!total!of!1,871!
Microbreweries!across!the!United!States!47!!!
Craft!brewers!accounted!for!$19.6!billion!in!national!sales,!which!is!about!17.6!
percent!of!all!beer!sales!in!2014,!proving!that!demand!for!craft!beer!is!on!the!rise!
Minnesota’s!craft!beer!market!share!was!less!than!ten!percent!while!major!craft!
beer!cities!like!Denver,!Portland,!and!San!Francisco!rise!close!to!thirty!percent,!
leaving!room!for!expansion!in!Minnesota!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
43

http://marketingthink.com/craft-beer-marketing-how-to-use-social-media-to-promote-your-craft-beer-bar/
http://sproutsocial.com/insights/facebook-stats-for-marketers/
45
https://zephoria.com/top-15-valuable-facebook-statistics/
46
http://sproutsocial.com/insights/new-social-media-demographics/#facebook
47
https://www.brewersassociation.org
44

!

15!

!


The!steady!growth!of!craft!beer!shows!a!shift!in!American!beer!culture.!Craft!
brewers!hope!to!have!a!twenty!percent!market!share!by!2020!48!
Beer!consumption!remained!steady!through!the!2008!recession!49!
!
!

!
!

4.6.

Political/Regulatory+Environment+

!
Licenses!are!difficult!to!obtain!with!their!lengthy!process!that!takes!around!two!
years!to!complete.!The!licenses!must!be!obtained!through!the!state!and!the!cities!
in!which!the!brewery!plans!to!sell!their!products!50!
Microbreweries!must!have!various!licenses!and!follow!certain!laws!in!order!to!
be!eligible!to!legally!distribute!beer!across!the!state!and!sell!beer!in!their!
storefront.!These!laws!include:!barrel!cap!laws,!franchise!laws,!growler!laws,!
selfDdistribution!laws,!state!excise!tax!rates,!brewery!sales!laws,!and!sampling!
laws!51!

)
)

)
)
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
48

https://www.brewersassociation.org
http://www.gallup.com/poll/121277/Drinking-Habits-Steady-AmidRecession.aspx?g_source=beer%20consumption&g_medium=search&g_campaign=tiles
50
Travis – Owner of F-Town Brewing Company
51
https://www.brewersassociation.org!
49

!

16!

!

5. SWOT)Analysis)
)
5.1.
+

Location)–)Taproom))
o Affordable!leasing!in!downtown!Faribault!)
o Room!for!growth!D!warehouse!has!extra!space!that!can!be!expanded!into)
o Accessibility!to!Interstate!35!brings!ease!to!distribution)
o Craft!consumers!can!easily!find!their!way!to!the!brewery!D!Interstate!35!is!a!
frequently!traveled!road!)
Management)Team)
o Travis:!entrepreneur!D!his!background!with!past!successful!small!businesses)
o Noah:!engineer!D!his!attention!to!detail!helps!the!team!brew!better!tasting!
beer)
o Chris:!scientist!D!his!masters!degree!in!biology!and!bachelors!in!chemistry!
help!him!brew!great!tasting!beer)
Product)
o The!recipes!are!of!the!finest!quality!D!they!have!been!in!the!process!of!being!
perfected!for!more!than!8!years)
o New!product!in!the!industry!D!customers!are!interested!in!the!newest!craft!
beers)

5.2.
+

Strengths+

)
Weaknesses+

Location)–)Taproom))
o Faribault!has!a!limited!market!with!a!population!of!23,414!and!a!very!limited!
target!market!with!only!about!5,000!eligible!beer!consumers!)
o Faribault!is!in!southern!Minnesota,!about!an!hour!south!of!Minneapolis,!
making!it!hard!to!attract!customers!from!the!Twin!Cities!)
Competition)
o Most!competition!is!in!the!Twin!Cities!area.!Customers!generally!will!not!
make!a!trip!to!Faribault!to!see!only!one!brewery)
o In!2015,!Minnesota!is!home!to!approximately!100!craft!breweries,!making!it!
hard!to!differentiate!from!competition!!)
New)to)the)Industry)
o As!one!of!the!newest!breweries!in!the!industry,!it!is!hard!to!understand!the!
everDchanging!wants!of!the!customers)
o FDTown!has!yet!to!establish!their!message!and!brand!identity!)

)
)
)
)
)

!

17!

!

Opportunities+

5.3.

+

Expansion)to)new)demographics+
o Use!spillover!from!current!consumers!of!FDTown!beer!to!reach!a!new!
consumer!(i.e.!Wives!of!men!that!are!consuming!the!product))
o Capitalize!on!the!potential!of!women!beginning!to!drink!craft!beer)
o Capture!the!potential!Shattuck!St.!Mary’s!visitors!)
o Use!social!media!to!attract!craft!drinkers!and!build!brand!loyalty)

)

Expansion)to)new)distributors))
o Contract!with!new!restaurants,!bars,!and!liquor!stores!throughout!the!state!
of!Minnesota)
o Continue!to!contract!and!interview!distributors!other!than!College!Town!to!
reach!outside!the!Rochester/Mankato!and!Lakeville/Burnsville!areas)

)

Growth)in)craft)beer)industry)
o More!craft!beer!consumers!want!to!try!different!kinds!of!craft!beer)
o There!is!room!for!growth!in!the!Minnesota!craft!beer!market!opposed!to!
bigger!markets!such!as!Denver!and!Portland)

)

New)to)market)
o Develop!a!strong!brand!identity!that!resonates!with!many!craft!consumers)

5.4.
+


)
!

)
Threats+

Policy)+
o Licenses!are!hard!to!obtain,!sometimes!taking!up!to!2!years+
o Approval!from!both!the!state!and!the!city!the!brewery!resides!in!is!needed!
for!licenses+
o Government!policy!could!impact!brewing!viability!through!high!alcohol!taxes+
Brand)identity+
o If!FDTown’s!identity!does!not!develop!to!a!recognizable!brand!among!
consumers,!distribution!will!fail+
Larger)breweries+
o MidDsized!firms!can!buyout!smaller!craft!breweries,!sometimes!offering!a!
similar!product!at!a!lower!price+
o Big!breweries!offer!cheaper!beer,!although!not!craft,!and!a!price!that!craft!
breweries!cannot!compete!with+
Microbreweries)located)in)Twin)Cities+
o Many!microbreweries,!such!as!Surly!and!Indeed,!are!located!in!the!heart!of!
the!Twin!Cities,!which!provides!them!with!a!large!pool!of!customers+
o Tourists!and!craft!brew!advocates!can!easily!visit!the!Twin!Cities!and!seek!
out!a!few!breweries!in!the!area!within!a!day+

18!

!

6. FVTown’s)Sustainable)Competitive)Advantage))
)

!
!

FDTown!Brewing!Company,!a!microbrewery!located!in!Faribault,!Minnesota,!is!one!of!
the!many!craft!breweries!in!the!expanding!Minnesota!craft!beer!industry.!With!their!
brand!new!brewery!and!taproom,!FDTown!is!producing!a!fleet!of!beer!with!the!finest!
quality!ingredients.!They!have!entered!into!an!industry!that!craves!new,!original,!and!
flavorful!beers,!and!with!their!continuous!distribution!across!the!state,!consumers!are!
given!the!opportunity!to!drink!a!unique!beer!from!a!historyDrich,!rural!Minnesota!town.!!

7. Segmentation))
)

As!FDTown!begins!to!develop!a!brand!identity!and!product!awareness!paired!with!
reachable!goals!for!growth!over!the!next!five!years,!there!are!three!potentially!feasible!
segments!that!FDTown!can!target!to!help!reach!these!goals.!!!!

)
7.1.
)

Urban+Minnesotan+males,+ages+24632)
Ages!24D32!with!substantial!income)
o With!nearly!40!percent!of!Minnesotans!age!25D34!having!earned!a!bachelor’s!
degree!or!higher,!MN!ranks!7th!nationally!in!educational!attainment!52!
o Young!adults!with!a!master’s!or!higher!degree!have!an!median!annual!
income!of!$59,600!53)
o PostDgrad,!consumers!will!be!coming!into!the!workforce!and!developing!a!
substantial!income!to!spend!on!leisure!items!like!craft!beer!54)
o Without!families!or!other!large!commitments,!young!adults!have!the!time!to!
go!out!to!grab!drinks!with!friends!55)
o Young!male!adults!are!interested!in!staying!up!to!date!with!social!trends!
using!Facebook,!Twitter,!etc.!to!discover!what!is!new!and!worth!trying!!!)
o “The!majority!of!beer!drinkers![at!this!age]!believe!that!brand!and!style!of!
beer!says!a!lot!about!a!person,!which!highlights!the!value!that!age!group!
places!on!image.”!56!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
52

http://www.mncompass.org/trends/insights/2014-03-01-minnesota-millennial-trends
https://nces.ed.gov/fastfacts/display.asp?id=77
54
http://www.forbes.com/sites/larissafaw/2012/05/18/why-millennials-are-spending-more-than-they-earn/
55
The Bare Bones Introduction to Integrated Marketing Communication- By Robyn Blakeman
56
http://www.csnews.com/product-categories/beverages/survey-craft-beer-consumers-casual-dual-drinkers
53

!

19!

!

o Sales!at!restaurants!and!bars!surpassed!spending!in!grocery!stores.!!The!
millennial!generation!is!more!willing!to!spend!money!on!food!and!drink!
away!from!home!57!
Urban!living!accessed!through!distribution!)
o In!recent!years,!“the!number!of!collegeDeducated!people!age!25D34!living!
within!three!miles!of!city!centers!has!surged”!58)
o Located!near!the!metropolitan!area,!these!consumers!are!interested!in!a!
casual,!relaxed!environment!after!long!days!of!work,!such!as!bars!and!
restaurants)
o Due!to!living!in!an!urban!area,!these!craft!beer!drinkers!typically!live!within!
10!miles!of!a!bar,!restaurant,!or!liquor!store!59)
o A!common!way!to!engage!in!an!urban!community!is!to!go!out!to!bars!or!
restaurants!and!share!a!beer!with!friends!and!neighbors!60!)
Engaged!in!world!of!craft!beer)
o “Beer!is!the!preferred!alcoholic!beverage!of!69%!of!men!aged!18D29”!61)
o This!segment!of!males!is!the!main!consumer!of!craft!beer!and!the!main!
segment!drinking!craft!beer!across!the!state!of!Minnesota!62)
o Trying!new!craft!beer!comes!as!a!source!of!pride!for!many!young!beer!
drinkers.!This!sector!of!drinkers!are!often!innovators!as!they!are!eager!to!try!
new!beers!)
o Craft!beer!reflects!this!age!group's!interest!in!local,!environmentally!
sustainable!products,!even!it!they!may!cost!a!little!more!63!)

)

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
57

http://www.foxnews.com/leisure/2015/04/15/americans-spend-more-on-dining-out-than-groceries-for-first-timeever/
58
http://www.nytimes.com/2014/10/20/upshot/where-young-college-graduates-are-choosing-to-live.html?_r=0
59
http://growlermag.com/minnesota-brewery-map/
60
http://thehappygnome.com/
61
http://www.gallup.com/poll/8908/younger-males-drink-most-sometimes-too-much.aspx
62
https://www.brewersassociation.org
63
http://www.entrepreneur.com/article/246092

!

20!

!

7.2.

)

7.3.
)

Suburban+Minnesotan+males,+ages+30642)
Suburban!father!!!!)
o Family!orientated,!living!in!an!energetic!and!fast!paced!atmosphere!and!
looking!for!a!good,!quality!beer!to!unwind!with!64!65)
o Of!millennial!men!who!were!already!fathers,!fiftyDthree!percent!said!it!is!
better!for!mothers!and!fathers!to!take!on!traditional!roles!66)
o Minnesota!has!a!72.5%!homeownership!rate!67!
Ages!30D42!!!!!)
o Established!financially!and!able!to!spend!the!money!on!finer!quality!items!68)
o This!age!group!is!interested!in!authenticity,!flavor,!and!history!of!the!beer!
they!drink!69)
Supports!local!businesses)
o Enjoy!quality!and!specialty!items!made!by!local!businesses,!like!craft!beer!
from!a!microbrewery)
o Interested!in!craft!beer!because!of!its!variety,!taste,!and!experimentation!
with!seasonal!and!local!choices!70)

)
)
Urban+Minnesotan+females,+ages+24642)

Ages!24D42!with!substantial!income!)
o PostDgrad,!consumers!will!be!coming!into!the!workforce!and!developing!a!
substantial!income!to!spend!on!leisure!items!like!craft!beer!71)
o Women!are!the!third!largest!segment!of!consumers!that!are!drinking!craft!
beer,!accounting!nationally!for!fifteen!percent!of!total!consumption!)
Urban!living)
o Located!near!the!metropolitan!area,!these!consumers!are!interested!in!a!
casual,!relaxed!environment!after!long!days!of!work,!such!as!bars!and!
restaurants)
o Due!to!living!in!an!urban!area,!these!craft!beer!drinkers!typically!live!within!
10!miles!of!a!bar,!restaurant,!or!liquor!store)
! A!common!way!to!engage!in!an!urban!community!is!to!go!out!to!bars!or!
restaurants!and!share!a!beer!with!friends!and!neighbors!72!)
Interested!in!following!new!trends)

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
64

http://www.gallup.com/poll/156770/majority-drink-alcohol-averaging-four-drinks-week.aspx
http://drinks.seriouseats.com/2014/02/issues-craft-beer-gender-environment-competition-safety.html
66
http://www.nytimes.com/2015/07/31/upshot/millennial-men-find-work-and-family-hard-to balance.html?_r=0
67
http://quickfacts.census.gov/qfd/states/27000.html
68
http://mashable.com/2015/06/09/post-hipster-yuccie/#Efxaz5V14Oq3
69
http://www.millennialmarketing.com/2014/01/the-millennial-consumer-craves-craft-beer/
70
http://www.millennialmarketing.com/2014/01/the-millennial-consumer-craves-craft-beer/
71
http://www.forbes.com/sites/larissafaw/2012/05/18/why-millennials-are-spending-more-than-they-earn/
72
http://thehappygnome.com/
65

!

21!

!
o Women!influence!or!make!eighty!percent!of!all!purchase!decisions!in!a!
household!73)
o Women!are!switching!to!drink!craft!beer!rather!than!wine!because!craft!beer!
provides!a!different!flavor!composition!than!traditional!light!or!dark!beer!)
o Craft,!if!seen!as!a!trend,!is!an!important!keyword!for!many!consumers.!
ThirtyDfive!percent!of!adults!21!and!older!say!the!label!“craft”!makes!them!
more!interested!in!consuming!that!particular!beverage!74)

)
8. Targeting))
!

FDTown!Brewing!Company!should!pursue!and!implement!a!product!development!
strategy,!because!they!are!a!new!player!in!the!craft!beer!industry,!targeting!urban!
Minnesota!males!ages!24D32.!The!focus!on!the!Minnesotan!urban!male,!opposed!to!a!
male!in!Faribault,!is!based!off!the!rationale!that!the!majority!of!FDTown’s!profits!will!
come!from!distribution!in!liquor!stores!or!restaurants!across!the!state!of!Minnesota.!
Also,!this!is!part!of!the!age!demographic!that!is!already!drinking!the!highest!volume!of!
craft!beer.!!!!

)
8.1.

)







Representative+Agent+from+the+Target+Market)
Males!ages!24D32!)
Live!in!urban!areas)
Beer!is!their!preferred!alcoholic!beverage!)
Annual!income!is!$59,600)
Interested!and!eager!to!try!craft!beer!)
Millennial!men!value!customization!
Often!perceived!as!innovators,!trend!starters,!and!predictors!of!the!next!big!
thing,!Millennial!males!lead!the!pack,!in!one!way!or!the!other!75!
They!also!have!spending!power.!Varying!estimates!place!this!group's!purchasing!
power!anywhere!between!$125!billion!and!$890!billion!annually!while!some!
estimates!attribute!these!young!shoppers!with!$200!billion!of!direct!buying!
power!plus!an!additional!$500!billion!in!indirect!influence,!based!on!Millennials'!
powers!of!persuasion!over!their!Baby!Boomer!parents!76!
This!group!spends!significantly!more!time!per!week!(2!hours!15!minutes)!than!
any!other!demographic!watching!videos!on!the!Internet!77!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
73

http://www.craftbeer.com/craft-beer-muses/why-women-are-a-critical-part-of-the-future-of-u-s-craft-beer
http://www.craftbeer.com/craft-beer-muses/why-women-are-a-critical-part-of-the-future-of-u-s-craft-beer!
75
www.nielsen.com/us/en/insights/news/2014/the-men-the-myths-the-legends-why-millennial-dudes-might-bemore-receptive-to-marketing.html
76
www.nielsen.com/us/en/insights/news/2014/the-men-the-myths-the-legends-why-millennial-dudes-might-bemore-receptive-to-marketing.html
77
www.nielsen.com/us/en/insights/news/2014/the-men-the-myths-the-legends-why-millennial-dudes-might-bemore-receptive-to-marketing.html
74

!

22!

!


While!the!media!has!predicted!that!Millennial!males!are!all!but!impermeable!to!
marketing,!data!shows!that!Millennial!males!are!not!only!receptive!to!marketing,!
but!that!they!proactively!try!to!learn!more!about!the!companies!they!hear!about!
or!do!business!with!
Within!the!computers!and!electronics!category,!seventyDsix!percent!of!all!
impressions!served!to!a!campaign!aiming!to!reach!Millennial!males!do!so!
successfully,!compared!with!fiftyDseven!percent!for!campaigns!aiming!to!reach!
the!general!Millennial!population!78!!
The!difference!between!Millennial!men!and!women:!Men!are!more!likely!to!be!
early!adopters,!more!likely!to!do!activities!alone,!and!less!likely!to!be!the!“head!
of!the!household”!79!
Of!millennial!men!who!are!already!fathers,!fiftyDthree!percent!said!it!was!better!
for!mothers!and!fathers!to!take!on!traditional!roles!80!
!

!!!

)
)

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
78

www.nielsen.com/us/en/insights/news/2014/the-men-the-myths-the-legends-why-millennial-dudes-might-bemore-receptive-to-marketing.html
79
http://www.entrepreneur.com/article/229574
80
http://www.nytimes.com/2015/07/31/upshot/millennial-men-find-work-and-family-hard-to-balance.html?_r=0!

!

23!

!

8.2.

)


Secondary+Representative+Agent)
Makes!up!fortyDeight!percent!of!consumers!who!drink!craft!beer!more!than!once!
a!week!
TwoDthirds!of!millennials!consider!themselves!adventurous.!These!consumers!
demonstrate!willingness!for!a!unique!experience,!and!will!drive!craft!beer!
demand!
Over!forty!percent!of!millennial!craft!beer!consumers!state!that!craft!beer!
“simply!tastes!better”,!according!to!the!2013!Mintel!Report.!81!82!

)
9. Positioning))
)
9.1.
Price)

!
The!target!market!is!able!and!willing!to!pay!for!a!premium!product!that!keeps!them!
engaged!with!what!is!new!and!exciting!in!their!community.!

))

With!higher!education!and!income,!this!group!of!males!is!able!to!and!wants!to!
pay!for!high!quality,!trending!craft!beer)
Cost!is!rarely!a!decision!factor!when!choosing!a!beverage.!“Only!five!percent!use!
price!to!determine!what!they’ll!buy.”!This!target!market!is!more!concerned!with!
what!the!brand!they!are!buying!is!saying!about!who!they!are!83!)

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
81

http://barkely/s3.amazonaws.com/barkleyus/AmericanMillennials.pdf
http://www.slideshare.net/cteahan/consumer-andinnovationtrendsincraftbeer
83
http://www.bustle.com/articles/14036-how-much-does-america-spend-on-beer-1200-per-drinker-per-year-and-5more-facts
82

!

24!

!
o Craft!beer!is!a!prestige!product:!The!higher!the!price,!the!higher!the!status!
associated!with!it)
)

9.2.

Product)

!
This!segment!is!interested!in!the!quality!and!prestige!of!their!products.!Craft!brew!
emphasizes!choosing!local,!quality!products,!and!staying!up!to!date!with!what!is!
trending.)
)
• Packaging!)
o Attractive!cans!draw!in!consumers!and!cans!allow!them!to!go!places!bottles!
can’t.!This!is!geared!toward!the!active!and!busy!lifestyle!of!these!young!urban!
men!84)
o “[Beer!drinkers]!want!to!eat!local!cuisine,!drink!local!beer,!and!get!to!know!
the!artisans!making!the!products!they’re!interested!in!purchasing.”!85)
! Breweries!that!create!quality!craft!beer!are!welcomed!into!the!craft!beer!
industry!with!“open!arms.”!86!)
)
9.3.
Promotion)
!
The!target!segment!is!heavily!involved!with!social!media!sites!and!wants!to!be!
engaged!with!what!brands!are!trending.!They!also!take!pride!in!drinking!craft!beer!
and!want!to!continue!staying!up!to!date!with!the!craft!beer!community.!)
)
• “Bringing!the!consumers!into!your!marketing!and!making!them!feel!like!they!are!
organically!discovering!your!beer!is!the!gold!medal.”!87)
• Sporting!events!
o FortyDeight!percent!of!fans!drink!during!sporting!events!88)
o FiftyDfour!percent!of!fans!drinking!during!sporting!events!are!between!the!
ages!of!21!and!35!89)
• Taste!testing!
o Rising!popularity!in!taprooms!among!the!urban!population:!this!is!a!popular!
way!for!people!that!enjoy!craft!beer!to!sample!a!variety!of!crafts!!
• Social!Media!!
o The!easiest!way!to!connect!with!FDTown’s!target!market!
! Facebook)
! Instagram)
! Twitter)
)
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
84

https://www.brewersassociation.org/insights/craft-brewers-and-cans/
http://www.theduluthexperience.com/locally-crafted-beer-rise-brewery-tourist/
86
brewersassociation.org
87
http://www.forbes.com/sites/paultalbot/2015/07/06/the-high-stakes-of-craft-beer-marketing/
88
http://www.wired.com/2011/01/drinking-sporting-events/
89
http://www.wired.com/2011/01/drinking-sporting-events!
85

!

25!

!

9.4.

Place)

!
Living!in!a!metropolitan!area,!this!target!market!wants!to!be!able!to!have!their!
favorite!craft!beers!in!their!nearby!restaurants!and!bars.!In!addition,!they!will!buy!
their!alcohol!from!their!local!liquor!store.!Highly!interested!in!craft!beers,!this!
target!market!will!also!seek!out!taprooms!and!breweries!to!visit!and!try!new!
brands!of!craft!beer.!)
)
• Twin!Cities!bars,!restaurants,!and!liquor!stores)
o The!Happy!Gnome!is!home!to!seventyDseven!craft!beers!and!ciders!from!all!
over!Minnesota!and!the!Midwest!90!)
o Republic,!an!award!winning!craft!beer!bar!in!Minneapolis,!offers!over!fifty!
craft!beers!and!ciders.!91)
• “Happening!places”!in!the!Twin!Cities)
o Young!urban!males!are!constantly!going!from!place!to!place!and!need!options!
that!eliminate!travel!time92)
• Northeast!Minneapolis!younger!hangouts)
o Sponsorship!and!participation!in!festivals!geared!toward!young!urban!
professionals!)
! Example!events!include!Zombie!Pub!Crawl,!St.!Patrick’s!Day!suds!run,!and!
other!weekend!festivals)

)
10. )Marketing)Plan)Implementation)and)Expected)Return)
)

10.1.
Implementation:+With+the+target+market’s+high+use+of+social+
media+sites,+one+of+the+best+ways+to+bring+brand+awareness+is+
through+the+World+Wide+Web)

)
• Constant!updating!of!current!Twitter!93!and!Facebook!accounts!94)
o This!target!market!frequently!uses!these!social!media!sites.!The!more!the!
pages!are!updated,!the!more!attention!FDtown!will!draw!(to!an!extent))
o Post!about!upcoming!events,!during!events,!and!after!events,!including!
pictures,!videos,!and!status!updates)
o On!Facebook,!post!pictures!of!customers!in!the!taproom!enjoying!FDTown!
beer.!!In!the!photo!caption,!encourage!customers!to!tag!themselves!in!hopes!
to!expand!FDTown’s!market!reach!
o On!Twitter,!tweet!back!at!customers!that!tweet!at!FDTown.!Constant!outreach!
will!bring!brand!loyalty)
• Update!current!website!95!with!the!help!of!a!web!designer)

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
90

http://thehappygnome.com/menus/draft-beer-menu.pdf
http://republicmn.com
92
http://info.biztraffic.com/blog/marketing-yummies-young-urban-male
93
https://twitter.com/ftownbeer
94
https://www.facebook.com/ftownbeer/!
91

!

26!

!




o Work!with!a!web!designer!to!make!the!site!more!user!friendly)
o The!website!must!educate!and!engage!visitors!on!what!FDtown!is!and!what!
their!product!is)
Create!an!Instagram!account)
o FDTown!has!already!been!included!in!Instagram!hashtags!and!geolocations!by!
users!who!enjoy!the!product)
o By!creating!an!Instagram!account,!FDTown!can!link!this!recognition!directly!
to!their!business!account,!which!will!increase!brand!awareness)
o Update!Instagram!account!with!1D2!pictures!a!day,!using!hashtags!and!
geolocations)
Have!monthly!social!media!photo!contests!across!multiple!platforms)
o Post!contests!on!Facebook,!Twitter,!and!Instagram!that!promote!customers!
to!take!pictures!of!themselves!drinking!FDTown!beer.!In!their!posts!they!must!
use!the!monthly!hashtag!along!with!the!traditional!hashtag!(#ftownbeer))
o Picked!at!random,!a!few!lucky!winners!will!receive!a!free!drink,!growler,!or!
piece!of!FDTown!swag!that!was!advertised!as!a!prize!for!the!winners!of!the!
competition!)
o This!will!expand!FDTown’s!reach!as!customers!will!post!pictures!of!
themselves!that!advertise!FDTown’s!beer.!Followers!of!each!individual!
customer!will!see!FDTown!on!their!own!pages!and!therefore!FDTown!is!
reaching!more!than!just!their!followers!on!Facebook.!They!will!soon!generate!
more!followers!on!all!of!their!social!media!platforms!)
Start!promoting!Free!Beer!Friday’s!on!Facebook)
o Post!a!picture!with!a!caption!on!Facebook!saying!that!one,!or!a!few,!lucky!
winners!out!of!all!who!liked!the!picture!will!win!a!free!glass!of!whatever!beer!
is!advertised!in!the!picture)
o This!will!further!attract!customers!to!like!the!Facebook!page!and!expand!FD
Town’s!reach!when!Facebook!friends!of!followers!see!their!friends!liking!
posts!from!FDTown)
Create!a!primary!hashtag!to!use!on!all!accounts!and!for!consumers!to!use.)
o #ftownbeer!has!already!received!some!use!on!social!media)
Use!a!secondary!hashtag!to!pair!with!contests!)
Pay!Per!Click!(PPC)!Advertising!)
o If!the!above!brand!awareness!strategies!are!profitable,!then!PPC!advertising!
is!a!useful!strategy!to!increase!website!traffic!)
Growler!Magazine!Advertisements!)
o Again,!if!brand!awareness!strategies!are!profitable,!then!advertising!on!
Growler!Magazine,!a!magazine!on!Minnesota’s!craft!beer!lifestyle,!would!be!a!
great!way!to!reach!the!young!beerDcrazy!Minnesotans!who!don’t!yet!know!
about!FDTown)
)

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
95

!

http://ftownbeer.com

27!

!

10.2.
Implementation:+This+target+segment+often+goes+out+to+bars+
and+restaurants,+being+exposed+to+and+engaging+with+different+
brands+of+craft+beer+

)
• Sending!customized!coasters!with!FDTown’s!logo!and!website!to!multiple!bars!
and!restaurants)
o !2000!count!for!$300!96)
! If!successful,!do!the!same!with!customized!FDTown!beer!glasses)
! Send!out!flyers!to!all!liquor!stores,!restaurants,!and!bars!that!currently!
and!will!serve!FDTown!beer!in!the!future)
• Update!current!flyer!with!more!engaging!imagery!(i.e.!photos!of!FDTown!cans!or!
a!tagline!phrase!that!captures!the!essence!of!FDTown))
• Provide!a!free!tasting!night!of!FDTown’s!different!brews!at!local!bars!and!
restaurants!to!encourage!demand!for!FDtown!on!tap)
)

10.3.
Implementation:+Eager+to+engage+in+the+world+of+craft+beer+
and+try+new+brands,+this+target+segment+will+be+interested+in+
varying+beer+events+

)
• Bringing!a!keg!to!different!beer!festivals!(more!of!which!will!be!in!the!
summertime))
• Getting!FDTown!beer!to!participate!in!liquor!store!tastings)
• CoDsponsoring!events!on!and!off!site)
o !OnDsite:!Art!festival!that!encourages!local!artists!to!display!and!sell!their!
work,!OpenDstage!night!that!encourages!local!musicians!to!perform,!a!yard!
game!tournament,!etc.)
o OffDsite:!Events!in!urban!areas!including!but!not!limited!to!music!festivals,!art!
festivals,!block!parties,!running!races,!and!tailgating!events.)
• Continuation!of!local!events,!such!as!concerts,!pairing!with!food!trucks,!and!pubD
crawls.)
o Though!these!events!do!not!engage!this!particular!urban!segment,!the!
engagement!of!the!local!residents!will!transcend!to!the!urban!population!
through!social!media!and!word!of!mouth!advertising.)
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10.4.
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Timeline+for+the+campaign)

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The!first!month:
o Update!all!social!media!accounts!and!website
o Implement!primary!hashtag!for!all!social!media!accounts
o Create!Instagram!account

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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http://www.customonit.com/custom-medium-weight-coasters60pt.html?gclid=Cj0KEQiAjpGyBRDgrtLqzbHayb8BEiQANZauh2nGT0ZkE1a9_5uO3xCAN4TWJgQT5OENlJMopGLKw8aAvmq8P8HAQ#customize!

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)

o Implement!#freebeerfriday!every!Friday!on!Facebook
o Start!posting!on!every!social!media!site!everyday!about!upcoming!events
Every!month:
o Bring!updated!and!renovated!coasters!and!flyers!to!new!restaurants!and!
liquor!stores!
o Encourage!consumers!to!post!photos!in!a!monthly!contest:

)

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Month!

Photo)Contest)#!

)January!

#newyearnewbeer!

)February!

#frostyftown!

)March!

#luckyipalicious!

)April!

#hoppyapril!

)May!

#1american!

)June!
)!

#nutso!

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10.5.
)

Budget)

Cost)Per)Month!

)!

!!!!!!Social!Media!

No!cost!

!!!!!!Events!

$500!

!!!!!!Coasters!(4000!units)!

$600!

))))))Flyers!

$100!

Total)Cost)

$1200)

)

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10.6.

Contingency+Plan)

10.7.

ROI++

)
• If!there!is!not!a!clear!differentiation!between!FDTown!and!other!craft!breweries,!
there!will!not!be!the!brand!awareness!necessary!to!make!FDTown!Brewing!
Company!a!household!name!)
• If!the!craft!beer!market!continues!to!saturate!and!expand!at!the!rate!that!it!has!in!
Minnesota,!then!there!is!a!possibility!that!FDTown!will!become!obsolete,!as!so!
many!brands!will!be!competing!for!the!attention!of!this!targeted!consumer)
• Prohibition!II!could!lead!to!lack!of!legal!liquor!distribution!licenses.!FDTown!
should!then!invest!time!designing!recipes!for!Root!Beer,!meanwhile!
transforming!their!taproom!into!a!speakeasy)

+
• Marketing!Metrics)
o The!use!of!hashtag!searches!and!click!counts!is!the!most!efficient!way!for!FD
Town!to!track!and!monitor!the!success!of!their!social!media!campaign!97)
• As!a!result!of!this!campaign,!we!hope!to!establish!brand!awareness,!gain!market!
share,!and!illicit!brand!loyalty!among!Minnesota!craft!beer!drinkers)
• Since!FDTown!is!a!new!company,!we!do!not!have!enough!data!on!profits!and!
investments!to!formulate!an!accurate!return!on!investments!)

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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https://www.getambassador.com/blog/social-media-marketing-metrics

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